For non-food items, packaging is necessary to minimize breakage in shipping. How much more garbage would there be if half the manufactured items were broken in transit?
Recycling is the proper answer to the proliferation of packaging. That we, as a society, aren't setting things up properly to facilitate this and minimize landfilling is our own failure, not that of the Chinese. There is absolutely no reason we can't have companies building large plants to collect recyclables and automatedly sort them and break them down for reprocessing into new packaging. If this isn't happening, it's because of a failure of governance.